PPF to recurring deposits: Breather for investors in small savings schemes
The finance ministry on recommendation from the department of posts has relaxed the provisions for account holders of public provident fund (PPF), Sukanya Samriddhi Account (SSA) and recurring deposits (RDs). Other measures have also been taken to make life of the small depositor simpler. Penalty/revival fees have been waived until June 30 for not investing the minimum amount due for the financial year 2019-20 and April 2020 (as the case may be) in various small savings schemes. So, in case you were not able to make any deposits in FY 20, there won’t be any default fee for the time being.
In case you had to make a payment, say, for
an RD on April 20 and because of the lockdown, you haven’t been able to make
it, you can do so till June 30 without a penalty. Also, for PPF and SSA, you can
make a single payment for FY19-20 until June 30. Balwant Jain, a tax
consultant, says: “Assuming you are making two PPF deposits of Rs
1.5 lakh each, one for FY19-20 and FY20-21. For FY19-20, you will have to give
an undertaking for the respective years. Also, you can’t club the deposits and
make a single payment of Rs 3 lakh.”
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